India’s third largest healthcare company, Manipal Health Enterprises (MHE), has chalked out an ambitious Rs 3000 crore expansion plan towards setting up new hospitals across India and a few international locations like gulf, Africa and Malaysia. Backed by private equity firm India Value Fund Advisors, MHE runs the Manipal Hospitals chain with a total capacity of 5,000 beds across 15 owned and managed hospitals primarily in southern India and a few pockets of west and north-east regions of the country.
Sudarshan Ballal, medical director and chairman – medical advisory board, Manipal Health Enterprises, said the company is looking at significant growth within the country and outside in the next 24-36 months. “We are hoping to add another 3,000 beds taking the total number to 8,000 in the next 2-3 years. The per bed cost for a multi-speciality hospital roughly works out to be Rs 1 crore,” said Ballal.
Funding the expansion will be done primarily through a combination of internal accruals and the Rs 1,000 crore odd private equity money raised from India Value Fund last year. MHE has its presence currently in Karnataka, Andhra Pradesh and Tamil Nadu. On the strategy for expansion, the hospital chain will look at a combination of greenfield (newly constructed) and brownfield (cold shell) and leasing options. It is also looking to foray into newer locations like Delhi, Rajasthan, Bhubaneswar and Odisha.
“We’d certainly like to have some presence in the north. It will be a bit premature for me to say when,” said Ballal.
Elaborating on the new capacity addition, Ballal said that 100 beds are being added to the recently renovated 650-bed Manipal Hospital at Bangalore. There are also plans to start two more hospitals (greenfield and brownfield) in Bangalore with a capacity of 600 beds between them and a 200-bed greenfield hospital in Goa. Goa is set for official launch early next year. The Mangalore unit in the making with 150-200 beds will be greenfield too.
On the international front, MHE recently acquired a hospital in Klang (Malaysia) called Arunamari Specialist Medical Center.
“Right now it is a small hospital with 60 beds and we will be adding 150-odd beds there. This apart, we have also started a clinic in Lagos, Nigeria,” said Ballal.
Among other foreign locations being explored for setting up hospitals include Africa and West Asia in addition to Malaysia.
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About 100 beds are being added to the recently renovated 650-bed Manipal Hospital at Bangalore
There are also plans to start two more hospitals in Bangalore with a capacity of 600 beds between them.
The Mangalore unit in the making with 150-200 beds will be greenfield too.